Pump.fun Plans $1 Billion Token Offering With Revenue Share

Pump.fun, a decentralized finance (DeFi) project, is planning to share protocol revenue with PUMP token holders. According to sources familiar with the matter, the project aims to raise $1 billion through its initial token offering. The specifics of how much protocol revenue will be allocated to token holders remain unclear, and it is uncertain whether this will include revenue from the decentralized exchange platform PumpSwap, which was launched earlier this year. Pump.fun has not responded to multiple requests for comments.

Sources revealed that the core idea is to link token buyback to a portion of the platform's revenue. The PUMP token, which targets both public and private investors, is expected to fully unlock at the Token Generation Event (TGE). Although there may be additional issuance, the total supply cap is set at 1 trillion tokens. The private sale was priced at $0.004 per token, with the public sale set to launch within two weeks. The public sale will be partly conducted through exchanges and accompanied by airdrops. An estimated 25% of the token supply is allocated for the public sale, with a 10% allocation reserved for airdrops.

This move by Pump.fun to share protocol revenue with token holders is a strategic decision aimed at incentivizing long-term holding and participation in the ecosystem. By linking token buybacks to platform revenue, the project seeks to create a sustainable economic model that benefits both the platform and its token holders. The full unlocking of tokens at TGE for participants in private and public sales is designed to ensure liquidity and accessibility for all investors.

The decentralized exchange platform PumpSwap, launched earlier this year, is expected to play a significant role in the project's revenue generation. However, it remains unclear whether the revenue sharing feature will include income from this platform. The project's decision to allocate a significant portion of the token supply for public sale and airdrops indicates a commitment to community engagement and decentralization.

Overall, Pump.fun's plan to share protocol revenue with PUMP token holders represents a forward-thinking approach to decentralized finance. By aligning the interests of token holders with the platform's success, the project aims to foster a sustainable and inclusive ecosystem. The upcoming public sale and airdrops are expected to generate significant interest and participation, further solidifying Pump.fun's position in the DeFi landscape.